Riot Platforms, Inc. · NASDAQ:RIOT
Riot Platforms — Investor Presentation (April 2024)
27 slides from Riot Platforms's investor presentation, Apr 18, 2024
Slide 1: Riot Platforms Corporate Presentation
NASDAQ: RIOT Riot Platforms (NASDAQ: RIOT) Corporate Presentation April 18, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements that reflect management’s current expectations, assumptions, and estimates of future performance and economic conditions, and are not guarantees of future performance
Slide 3: Bitcoin Is Likely To Scale Into A Multi-Trillion Dollar Market
“Bitcoin Is Likely To Scale Into A Multi-Trillion Dollar Market” ARK’s research estimates that the price of one bitcoin could exceed $1million by 20301 Price Target Assumptions Penetration Rate 2030 Bitcoin Price Target 2,936 MW (12/31/22 to 12/31/30 CAGR) Bitcoin Use Case Bear Base Bull $1.48millio
Slide 4: ETF Holdings nearly eclipsed the total of all other long-term Holders
ETF Holdings nearly eclipsed the total of all other long-term Holders 850,853 Other (37k BTC) (BITB; 33k BTC) (ARKB; (FBTC; 44k BTC) 151k BTC) (IBIT; Approximately 264k BTC) 1,081,356 BTC Held by Top 20 Entities 207,000 194,000 190,000 (GBTC; 140,000 322k BTC) 73,534 70,000 46,300 29,500 17,750 17,5
Slide 5: Riot's Unique Position for Growth
Riot’s Unique Position for Growth 1 Power capacity – Corsicana has 1 GW of capacity – 31.5 EH/s by YE 24 2 Bitcoin mining hardware – 100 EH/s in long-term agreement with MicroBT 3 Low cost of power – 2.2c/kWh all-in cost of power in 2023 4 Industry leading balance sheet– $1.29 billion in liquidity 1
Slide 6: Building A1, Corsicana Facility Development – Corsicana, Texas
Building A1, Corsicana Facility Development – Corsicana, Texas 6
Slide 7: Infrastructure Pipeline and Miner Purchase Contract Provide Clear Path to 100 EH/s
Infrastructure Pipeline and Miner Purchase Contract 1 Provide Clear Path to 100 EH/s in Self-Mining Rockdale Rockdale Expansion Corsicana 1 Additional Growth 2 100.0 EH/s Historical 59.4 EH/s 40.8 EH/s 36.1 EH/s 31.5 EH/s 27.1 EH/s Assuming full Assuming full exercise of 21.4 EH/s buildout of additi
Slide 8: MicroBT Order Significantly Upgrades Riot's Mining Fleet
MicroBT Order Significantly Upgrades Riot’s Mining Fleet 2 MicroBT Combined Order Summary Model Quantity Hash Rate Efficiency J/TH M60S (Air-Cooled) 31,500 186 TH/s 18.5 M56S+ (Immersion-Cooled) 8,320 220 TH/s 24.0 M56S++ (Immersion-Cooled) 22,684 230 TH/s 22.0 M66 (Immersion-Cooled) 20,778 250 TH/s
Slide 9: MicroBT Miner Order Secures Future ASIC Miner Purchase Supply and Pricing
MicroBT Miner Order Secures Future ASIC Miner Purchase Supply 2 and Pricing Historical ASIC & BTC Price History1 ▪ Riot began testing MicroBT miners in Q4 of 2022 $140/TH ▪ Consistently demonstrate high uptime Under 20 J/Th 20 to 25 J/Th 25 to 28 J/Th BTC Price $70,000 ▪ Purpose built for immersion-
Slide 10: Long-Term Power Contracts Form the Basis of Riot's Power Strategy
Long-Term Power Contracts Form the Basis of Riot’s Power Strategy 3 Riot’s 345MW Long-Term 24/7 Fixed-Price Power Contract is Utilized in 3 Ways… ERCOT Manual Curtailment ERCOT Ancillary Services 4 Coincident Peak ("4CP") Program ▪ Riot powers down operations and returns ▪ Riot competitively bids to
Slide 11: Fully-Funded Growth Plans Through Year-End 2025
Fully-Funded Growth Plans Through Year-End 2025 4 $97 million $26 $91 million million $160 million $245 million 8,490 BTC2 $685 million cash balance1 Q1 2024 Estimated Bitcoin Cost to Mine 4 Rockdale Rockdale Corsicana Facility Corsicana Facility Corsicana miner Production 2,3 expansion miner constr
Slide 12: Peer Group Analysis
Peer Group Analysis CS @-9-'G 1OoT
Slide 13: Riot Fleet and Power Strategy Drive Superior Mining Economics
Riot Fleet and Power Strategy Drive Superior Mining Economics Energy Cost to Produce 1 Bitcoin by Fleet Efficiency 1 $ / BTC Epoch 5 Epoch 6 $300,000 $248,921 $250,000 $234,681 $220,441 $208,032 $200,000 $172,862 $162,973 $165,947 $153,084 $156,454 $150,000 $144,467 $146,961 $138,688 $133,104 $125,4
Slide 14: Vertically Integrated Strategy Generates Superior ROIC
Vertically Integrated Strategy Generates Superior ROIC Net Cash Flow per EH/s Sensitivity Estimated Corsicana CapEx for 1 EH/s $40mm 1 Estimated Corsicana Infrastructure Costs $23.5mm Epoch 5 MicroBT Miner Order for 1 EH/s $16.5mm $ / MWh $42.4 $ 35 $ 40 $ 45 $ 50 $ 55 Epoch 5 Miner Fleet 20 J/TH $5
Slide 15: Riot's Scale is Undervalued at Current Hash Rate Multiples
Riot’s Scale is Undervalued at Current Hash Rate Multiples Enterprise Value / Current Hash Rate 1 158.2x 2,936 MW 133.7x 116.6x 12,901 MW 97.9x 22,581 MW 80.3x 78.0x 2,669 73.2x MW 44.4x 41.5x 29.4x 28.9x 24.6x RIOT CLSK CIFR MARA WULF BITF BTDR HIVE IREN SDIG GREE HUT 1. ‘Enterprise Value’ figures
Slide 16: Substation at Corsicana Facility - Corsicana, Texas
FY Power 2023Strategy Financial - Lower Updatefor Longer 400 MW Substation at Corsicana Facility - Corsicana, Texas 16
Slide 17: It's a 'Gas, Gas, Gas'
It’s a ‘Gas, Gas, Gas’ Natural Gas Production Growth in Texas Natural Gas Prices set Power Prices ▪ Natural Gas production in Texas has grown +62% from 5 Bcfe/pd to over 25 Bcfe/pd in the past 10 years ▪ LNG Exports have grown from 4 Bcfe/pd to 12 Bcfe in past 5 years ▪ Recent "Pause" on LNG permitt
Slide 18: It's a 'Gas, Gas, Gas'
It’s a ‘Gas, Gas, Gas’ Permian Basin - Maturing Permian Basin Gas to Oil Ratio (GOR) Increasing EOG's oil production up 10%, Permian Wells are Getting bigger but also ‘Gassier’... Gas production up 54% Permian Operators still drilling at record levels due to $85+ Oil price 1. Source: US Energy Infor
Slide 19: The Relationship Between Electricity and Gas
The Relationship Between Electricity and Gas Henry Hub Natural Gas and ERCOT Electricity Prices – Last 5 Years $ / MMBtu Henry Hub Natural Gas $/MMBtu 1 ERCOT $/MWh 2 $ / MWh $25 $500 $450 $20 $400 $350 $15 $300 $250 $10 $200 $150 $5 $100 $50 $- $- Apr-19 Aug-19 Dec-19 Apr-20 Aug-20 Dec-20 Apr-21 Au
Slide 20: Proportion of Renewable Energy Production in ERCOT Continues to Increase
Proportion of Renewable Energy Production in ERCOT Continues to Increase #1 in renewable energy production 1,2 in the US with wind and solar accounting for an expected 48% of total energy generation capacity in the ERCOT grid by 2024 ERCOT energy generation fuel mix 0.2% 0.4% 0.2% 3% ▪ By the end of
Slide 21: Where the Texas Grid has Been
Where the Texas Grid has Been 2,936 MW 12,901 MW 22,581 MW 2,669 MW 21
Slide 22: Next 5 Years - Where is the Texas Grid Going?
Next 5 Years - Where is the Texas Grid Going? Planned US Power Generation Capacity by State and Fuel Type Through 2028 Solar Wind Battery Natural Gas Nuclear Other MW 60,000.0 Majority of generation added in ERCOT will be intermittent 50,000.0 40,000.0 Planned Texas Power Generation by Fuel Type (20
Slide 23: Riot's Power Strategy in FY 2023 – Sell Power When Prices Exceed Bitcoin Price
Riot's Power Strategy in FY 2023 – Sell Power When Prices Exceed Bitcoin Price LZ South Average Settlement Price 1 $/MWh Mining Revenue 2 $600/MWh $540/MWh Average settlement $480/MWh price >$600/MWh $420/MWh $360/MWh Riot’s average cost $300/MWh of power 3 $240/MWh $180/MWh $120/MWh $60/MWh $22/MWh
Slide 24: Riot's Power Strategy Delivers Best in Class Results
Riot’s Power Strategy Delivers Best in Class Results Riot’s 2023 Power Cost Structure Analysis ($ / MWh) $ / MWh $70.0 $2.2 $62.2 $7.5 • $22.3 / MWh All-in Cost for /MWh /MWh /MWh $60.0 $52.5 power in 2023 /MWh $(8.9) $50.0 /MWh • 64% Decrease in power cost from Power Strategy $40.0 $(16.5) /MWh • S
Slide 25: Riot's Power Strategy – Power Needs Secured, Hedge Pricing Elevated
Riot’s Power Strategy – Power Needs Secured, Hedge Pricing Elevated Riot has agreements in place in Corsicana to supply 100% of all power needs, around the clock on an index basis Current Forward ERCOT LZ_North All-in Pricing1 Forward Pricing ($/MWh) of CY 2024 7x24 LZ_North1,2 $65.00 Term 7x24 ATC
Slide 26: Power Strategy – Low Pricing, Minimal Downtime in Corsicana
Power Strategy – Low Pricing, Minimal Downtime in Corsicana 1 All-In Power Pricing under Various Curtailment Scenarios % of Intervals Curtailed $31 / MWh 2.9% $30 / MWh 3.5% 2023 2023 $29 / MWh 5.6% $56 / MWh 0.0% Riot would have achieved $31 / MWh with only 2.9% downtime in 2023, curtailing $53 / M
Slide 27: Riot's vision: world's leading Bitcoin-driven infrastructure platform
Riot’s vision is to be the world’s leading Bitcoin-driven infrastructure platform New Large-Scale Facility 2024 Hash Rate Growth 2025 Hash Rate Growth Energized Apr 2024 +154% 12.4 EH/s 31.5 EH/s +30% 31.5 EH/s 40.8 EH/s 2024 & 2025 Cap Ex 2024 YE Fleet Efficiency 2025 YE Fleet Efficiency Fully Fund